DarioHealth Corp (DRIO)

[jimmenknee]

Reality: the filings are telling the investor that the underlying common shares are now registered so Preferred Share conversion should be monitored for the foreseeable future.

Notice of Effectiveness

The Prospectus Filing was required following the S1 filing that was in turn required per the Registration Rights Agreement entered into during the last Private Placement at the end of September (which included Mr Edery).

All normal actions.

There is a ~151k share difference between 10/6 and 10/15 filings, however, those shares can only be 1 of 2 types:
1.) Unregistered and thus restricted for 6 months minimum
2.) Converted ~ $60k Preferred Shares which would have been available for resale as of the 1st trading session following the date of the Notice (which equates to 10/31)

The company cannot "dilute" free trading shares as they have no registered shares in their treasury. They can only issue unregistered shares that carry a 6 month minimum restriction or issue (now) registered common shares to cover Preferred Share conversions.

The holders of the Preferred Shares have a contractual obligation to not sell shares until the end of November, and the company should be able to track conversions if they so desired; but I would not rule out the possibility of early selling...

I'm posting a Money Flow chart that contains the Conversion Zones moving forward. The share conversion/selling will act as a governor to price appreciation until investments are risk reduced. I see the sell zones up/until the somewhat infamous .94 area (0.185 pre-Split).